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Intuit (INTU) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Intuit (INTU - Free Report) closed at $577.26, marking a -0.25% move from the previous day. This move lagged the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq gained 0.14%.

Prior to today's trading, shares of the maker of TurboTax, QuickBooks and other accounting software had lost 9.5% over the past month. This has lagged the Computer and Technology sector's loss of 4.59% and the S&P 500's gain of 0.12% in that time.

Intuit will be looking to display strength as it nears its next earnings release. On that day, Intuit is projected to report earnings of $1.88 per share, which would represent year-over-year growth of 176.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.74 billion, up 73.58% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.66 per share and revenue of $12.28 billion. These totals would mark changes of +19.71% and +27.45%, respectively, from last year.

Any recent changes to analyst estimates for Intuit should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.33% lower. Intuit is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Intuit is currently trading at a Forward P/E ratio of 49.64. This valuation marks a premium compared to its industry's average Forward P/E of 41.2.

It is also worth noting that INTU currently has a PEG ratio of 3.17. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 2.86 based on yesterday's closing prices.

The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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